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SKO - Non - PDS (Archive)

*** These Guidelines were valid upto 16th April 2015***

Guidelines for Supply of SKO (Non-PDS) to Parallel Marketers

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1. General Requirement :

  1. Parallel Marketers seeking SKO (Non-PDS) supplies either through imports or from indigenous stock should fulfill requirements provided under the scheme of Parallel Marketers vide MOP&NG notification nos. GSR584 (E) dtd. 2-9-1993, GSR509 (E) dtd. 9-6-1995, GSR 510 (E) dtd 19.6.1995, GSR638 (E) dtd. 21-10-1998 and/or any other statutory provision stipulated by the Govt.(Central/State) before their requests are considered
  2. Vide Gazette Notification No. GSR405 (E) dtd. 6th July, 2006 amendment to SKO Control Order 1993 was made and Parallel Marketers were allowed to source SKO (Non-PDS) either through imports or indigenously produced stocks
  3. The Parallel Marketers should submit required documents as provided under the scheme of Parallel Marketers while furnishing their requests for supply of SKO (Non-PDS) and any other documents needed by Oil Company in this regard. The Parallel Marketers should also submit information as per Annexure –I.External Website that opens in a new window
  4. On supply of SKO (Non-PDS), the concerned Oil Company shall intimate details of supplies like name of the Parallel Marketer with full address, quantity, supply location, and period of supply to the respective State Government department at the end of calendar month
  5. The Parallel Marketers would comply with the guidelines finalized by the respective State Govt. and supplying Oil Company for procurement of SKO (Non-PDS) on inter-state basis

2. SKO (Non-PDS) supplies from indigenous stocks

  1. The Parallel Marketers should sign specific agreement for a period separately in the format provided by PSU Oil Cos
  2. The Parallel Marketers should possess
    1. valid storage license from the competent authority where SKO (Non-PDS) would be stored by them
    2. Sales tax registration
    3. Any other license/registration certificate required by the Govt.(Central/State) in connection with the business of Parallel marketing
    4. The Parallel Marketers should also inform in writing about the detailed plans of Parallel marketing business to the District Collectors where they would be storing / distributing / marketing SKO (Non-PDS) procured under the scheme
  3. Parallel Marketer shall put up an indent for requisite quantity at the assigned depot/ terminal of Oil Company along with advance payment by a Demand Draft in favour of Oil Company
  4. The Parallel Marketer will also arrange a suitable transport for carrying the same cargo, which must comply with relevant laws like Explosive License, Weights and Measure Certificate, Road Permit, etc. The supplies will be made on ex-MI (Main Installation) basis
  5. Supplies would be made at the rates applicable for non-PDS SKO customers, against advance payment only
  6. Invoice will be made in the name of Parallel Marketers only
  7. Cenvat-able invoice, if applicable, will be made available to the Parallel Marketer, who should have appropriate registration with the Excise Dept

3. SKO (Non-PDS) supplies from imported sources:

  1. Parallel Marketers should give total SKO (Non-PDS) demand at the time of placement of indent, so that options can be considered for giving supplies either from indigenous stock (depending on availability) or through imports
  2. Application for supply of SKO (Non-PDS) should be made by the Parallel Marketers giving details of parcel size, confirmation of storage facilities, delivery period, destination port etc.
  3. Details of facilities with the Parallel Marketers like tankage, pipelines, ship unloading facilities should also be furnished. Currently, no tankage /storage facilities will be made available by Oil Company for discharging of vessel
  4. In order to source SKO (Non-PDS) on economical basis, the Parallel Marketers or association of Parallel Marketers should procure parcel size of approx. 25 TMT at one time or as per parcel size restricted based on the available draft at intended destination port. SKO (Non-PDS) would be sold on High-Sea- Sales basis
  5. In case of multiple Parallel Marketers joining to import one parcel, there shall be one Lead Parallel Marketer amongst them, who should have a legally-enforceable Power of Attorney, with whom alone the Oil Company shall deal. The lead Parallel Marketer will ensure quick communication and decisions to / from all other Parallel Marketers and Oil Company
  6. The Parallel Marketers should sign specific agreement for a period separately in the format provided by PSU Oil Cos
  7. Processing fees of Rs.25,000/- per application would be payable by the Parallel Marketers in advance at the time of submission of application. This fee will be adjusted against actual import only
  8. Parallel Marketers should submit Demand Draft of any scheduled bank in favour of Oil Company covering 110% value based on the SKO (Non-PDS) price, prevailing on the day of placement of order, equivalent to the quantity of cargo to be imported
  9. All imports shall be carried out on CIF basis
  10. Facilitation charges shall be charged @ 2.5% of CIF cost of product
  11. Customs formalities and payment of Custom duties shall be completed by the Parallel Marketer
  12. Wharfage shall be paid by the Parallel Marketer
  13. Settlement of Port Charges will be addressed by seller or his vessel owners
  14. Demurrage charges @ Rs.500/- Per MT shall be taken in advance. However, actual demurrage shall be charged to the Parallel Marketer, as per the claim lodged by supplier/vessel owner at the time of settlement. While the total demurrage shall be quantified as above, in case of multiple party/multi-port discharge, the demurrage shall be pro-rated among the group of Parallel Marketers as based on B/L quantity, irrespective of whether any B/L holder had contributed to the demurrage or not
  15. Handling of tanker/vessel at discharge port will be the responsibility of Parallel Marketers
  16. At Discharge Port, the connection of hoses for unloading shall be responsibility of Parallel Marketer. For this a copy of agreement between Parallel Marketer and receiving Terminal shall be furnished by the Parallel Marketer in advance
  17. Payment will be made as per the Bill of Lading quantity (B/L). B/L shall be endorsed by the Oil Company for sale on high-sea-basis in favour of Parallel Marketer (importer)
  18. The Parallel Marketer will fully comply with the Govt. regulations on dosing of SKO (Non-PDS) with “Marker” as stipulated from time to time
  19. Boarding officer would be provided at disport by the Oil Company, with the limited purpose as following:
    1. Coordination between the vessel owner and seller vis-à-vis Parallel Marketers (through their Lead Parallel Marketer)
    2. Documentation with regard to commencement and stoppage of pumping, pressure log during discharge, and any other documentation, if any dispute arises prior or during discharge. The documents will be used for final demurrage claim, if any, from the supplier
    3. The boarding officer shall be considered only as a witness to all activities related to discharge on behalf of buyers
  20. A confirmation from concerned State Government(s) will have to be produced by the Parallel Marketer that the State Govt.(s) has/have received End Use Certificate for the entire quantity of previous parcel imported by the particular Parallel Marketer before the next order for import of SKO (Non-PDS) is accepted by the Oil Company
  21. Oil Industry would review these guidelines after six months depending on the practical experience with regard to release of SKO (Non-PDS) to Parallel Marketers
  22. The Partner / Director of the Company (Parallel Marketer) would issue an undertaking on the letter head of the company duly signed by the Partner / Director that the kerosene released under Parallel Marketing Scheme has been released by them to the genuine users, and such undertaking has to be issued before taking next supplies

Annexure –I

Details of Parallel Marketers to be submitted along with the application.

  • Constitution of the firm
  • Registered Office
  • Location and addresses of existing businesses
  • Names and addresses of promoters/directors/partners/sole proprietor
  • Background and full antecedents of promoters/directors/partners/sole proprietor
  • Details of existing operations of the Parallel Marketers and /or his group of companies
  • Audited account for last three years
  • Performance of Parallel Marketers in his other group companies for last three years
  • Marketing plans for Kerosene
  • Infrastructure for Kerosene sourcing/handling/storage at all locations with their capacities
  • Import locations identified
  • Proposed size of import parcels and quantum of product to be imported
  • Copies of approvals / licenses (ports / statutory / State Government / Chief Controller of Explosives environment / local authorities)
  • Whether kerosene storage facility conforms to code regulations/conditions of storage license
  • Storage arrangement for unloading of ship/details of hired or owned tankage and any agreement thereof (lease / ownership)
  • Details of Organizational Structure
  • Copies of rating certificate issued by the agencies mentioned in the Kerosene Control Orders
  • Copies of intimations given and returns furnished to Ministry of Petroleum and Natural Gas, New Delhi
  • Any other relevant details

Board Of Directors As On 8th April, 2015

Chairman and Managing Director

Ms. Nishi Vasudeva

Ms. Nishi Vasudeva: Chairman and Managing Director

Ms. Nishi Vasudeva took charge as Chairman & Managing Director of Hindustan Petroleum Corporation Ltd. effective March 01, 2014. Prior to this, she was Director - Marketing of the Corporation from July 4, 2011. She is the first woman to be appointed as Chairman & Managing Director of a Navratna PSU. She is also the Chairman of HPCL Joint Venture Companies - HPCL-Mittal Energy Ltd., South Asia LPG Co. Pvt. Ltd., and its wholly owned subsidiary, Prize Petroleum Co. Ltd.

Ms. Vasudeva is a PGDBM from India’s premier business school, Indian Institute of Management, Calcutta. She has a wide experience spanning over 36 years in diverse functions including Corporate Strategy & Planning Department, Information Systems and LPG Strategic Business Unit. She has played a key role in the development of several high impact strategies for the Corporation as well as in design and implementation of mission critical initiatives of the organisation which include Business Process Re-engineering, Enterprise Resource Planning etc. which transformed the way the organisation conducts its business and prepared it for the future.

Ms. Vasudeva represented the Corporation in various important industry forums like the Committee for Development of Perspective Plan for Hydrocarbons (also known as the Sundararajan Committee) which carried out an in-depth analysis of the Petroleum Sector and was instrumental in laying the road map for deregulation / dismantling of the APM and ushering in reforms in the Oil & Gas Sector.

In growing recognition and acknowledgement of her role in the Oil & Natural Gas Sector, Ms Nishi Vasudeva has been elected as Vice President - Youth and Gender, in the Executive Committee of the World Petroleum Council, which is the world’s premier Global Oil & Gas Forum. She has received the ‘Outstanding Woman Manager Award’ instituted by the Standing Committee on Public Sector Enterprises (SCOPE), Government of India, for the year 2010-11. She is an elected Member of the Governing Council of PETROFED, an Industry association of Private and Public Sector Companies operating in the Petroleum and Natural Gas Sector in India.

She is the recipient of the prestigious ‘CIO 100 Award’ for four consecutive years from 2006-07 to 2009-10 and was inducted into the ‘CIO 100 Hall of Fame’. She has also been conferred with the coveted “Most Powerful Women in Indian Business” award by Business Today.

Functional Directors

Shri Pushp K Joshi

Mr. P K Joshi: Director- Human Resources

Mr. Pushp Kumar Joshi took charge as Director - Human Resources effective August 01, 2012. Prior to this he was holding key portfolios in Human Resources viz. Executive Director – HRD, and Head – HR of Marketing Division.

A Bachelor of Law and an alumnus of XLRI, Jamshedpur, Mr. Pushp Kumar Joshi joined HPCL in 1986. Since then he has held various key positions in Human Resources and Industrial Relations functions at HQO, Marketing and Refineries Divisions of HPCL.

He has been responsible for the design and deployment of key HR policies and practices that are employee oriented and aim at building high performance culture.

He spearheaded various HR practices with strong business focus in HPCL viz; Project Akshay – the leadership development programme, Productivity Improvement Initiatives, leveraged the IT Platform for Internal Customer care, various Technical & Behavioral training programs, HR- Business Process Reengineering (BPR), Implementation of JDE (HR), Health Management System, HR Green Credit etc.

Mr. K V Rao

Mr. K V Rao: Director - Finance

Mr. K V Rao took charge as Director Finance effective 1st June 2013. Prior to his taking over as Director (Finance), Mr. K V Rao was Executive Director- Corporate Finance of HPCL for 5 years.

A member of the Institute of Chartered Accountants of India (ICAI), Mr. Rao brings with him rich experience of over 3 decades in handling various challenging assignments in HPCL in the fields of Corporate Finance, Treasury Management, Internal Audit and Marketing & Refinery Finance.

Mr. Rao has expertise in various areas in Financial Management, and is credited with effective treasury management in raising External Commercial Borrowing, Debentures, and various other types of financial instruments at very competitive interest rates as compared with the Industry.

He has various academic distinctions to his credit, which includes being a rank holder in CA and B.Com. He has also been actively participating in various seminars and workshops, both at national and international levels.

Shri B K Namdeo

Mr. B. K Namdeo: Director - Refineries

Mr. B. K Namdeo took charge as Director - Refineries effective July 01, 2013. Prior to this he was the Executive Director, International Trade and Supplies of HPCL.

A Mechanical Engineer and a Master of Technology from IIT Bombay, he has over 32 years of experience in various refinery functions and has held key positions in Central Engineering (Refinery Projects), Operations, Projects and Maintenance of the Refineries.

During his tenure as ED (IT&S), Mr. Namdeo was responsible for Procurement of Crude Oil, Product Evacuation, Ship Chartering, Refinery planning & scheduling and related commercial activities of both the refineries of HPCL.

. Shri. Y K Gawali

Mr. Y K Gawali: Director - Marketing

Mr. Y K Gawali took charge as Director - Marketing of Hindustan Petroleum Corporation Ltd. effective October 10, 2014. Prior to this, he was the Executive Director - LPG of HPCL. He is also on the Boards of GIGL and GITL.

A graduate in Civil Engineering, Mr. Y K Gawali has over 32 years of experience in Operations, Engineering & Projects, Logistics, Terminals, and LPG.

During his tenure as ED - LPG, he has been responsible for improving Marketing performance, customer focus and satisfaction and enhancing the brand image of HP Gas. He had been instrumental in implementing the key initiatives of capping of subsidized cylinders, Direct Transfer of cash subsidy and weeding out multiple LPG connections in the market.

In his earlier assignment as Executive Director - O&D he was responsible for strengthening and augmenting the Distribution infrastructure for HPCL, including pipelines, Terminals/depots besides optimizing the supply chain management, across the complete value chain.

Mr. Y K Gawali represents HPCL in the ‘World LPG Forum’. He has been faculty / guest speaker at several international conferences. He has been a key member of numerous Committees viz. Core Petroleum Industry Committee for formulating the post APM LPG policies and pricing, Joint Implementation Committee constituted by MOPNG for time bound implementation of M.B.Lal Committee recommendations and committee for formulation of various standards of Oil Industry etc.

Part-time ex-officio Directors

Dr. S C Khuntia

Dr. S C Khuntia: Director

Dr. Subhash Chandra Khuntia, has been appointed as a Part Time Director on the HPCL Board effective August 3, 2012.

Dr.S C Khuntia (IAS Karnataka cadre 1981) is a post -Graduate in Physics, Computer Science, Economics, Sociology and Doctorate in Economics. Before joining Petroleum Ministry as Additional Secretary & Financial Advisor, he was Principal Secretary, PWD, Govt. of Karnataka.

Dr.Khuntia has handled various key assignments including District administration, Land revenue management, Rural development, Urban Development and Finance in the Karnataka State Government as well as in the Ministries of Agriculture, Finance and Human Resource Development in the Central Government.

Shri  Sandeep Poundrik

Mr. Sandeep Poundrik: Director

Mr. Sandeep Poundrik has been appointed as a Part Time Director on the HPCL Board effective October 16, 2014.

Part-time non-official Directors

Shri G K Pillai

Mr. G K Pillai: Director

Mr. G K Pillai joined the HPCL board as an Independent Director effective April 9, 2012.

Mr. G K Pillai is a retired IAS officer. He joined Indian Administrative Service in the year 1972 and belongs to Kerala Cadre. He has done his M.Sc. at IIT, Chennai.

He started his career as Sub-Collector, Quilon and worked in diverse fields of Revenue Administration. He was District Collector, Quilon; Deputy Secretary, Labour; Special Officer for Cashew Industry; Special Secretary, Industries etc. He was Secretary, Health and Family Welfare during 1993-96 and Principal Secretary to the Chief Minister of Kerala during the period 2001-04.

In the Government of India, he held positions of Under Secretary / Deputy Secretary in Ministry of Defence and Director / Joint Secretary in the Department of Surface Transport. Later he served in the Ministry of Home Affairs as Joint Secretary (North East) from 1996 to 2001. In 2004 he joined Ministry of Commerce and Industry as Additional Secretary, Department of Commerce and later served as Secretary, Department of Commerce during 2006- 2009. During this period he actively participated in negotiations for comprehensive economic cooperation agreements with Singapore, ASEAN, Japan, South Korea. He played a key role in the enactment of the SEZ Act 2005 and was Chairman of the Board of approvals for SEZ during 2005 to 2009. He represented State and Central Government delegations to USA, EU, Argentina, Japan, Canada etc.

He was appointed as Union Home Secretary in June 2009 and retired from Government service in June 2011.

In addition to being a Director on Board of HPCL, he is also the Chairman of the Board of IVY Cap Ventures Pvt Ltd, a venture capital company sponsored by the IIT Alumni Association.

Shri A C Mahajan

Mr. A.C Mahajan :Director

Mr. Avinash Chander Mahajan joined the HPCL board as an Independent Director effective April 9, 2012.

Mr. A C Mahajan has done his M.Sc. (Chemistry Hons) in 1972, and thereafter joined Bank of India as an Officer in 1972. He is a career banker with over 38 years of varied experience in various Public Sector Banks in India and abroad.

He held various senior level positions in Bank of India viz., in charge -“Integrated Treasury”; General Manager In-Charge - Credit Department; General Manager - Risk Management Department; Chief Executive, Japan branchs etc. He had also worked in Kenya for five years as in charge of Nairobi (Kenya) branch.

Thereafter, he held various top level positions such as Executive Director - Bank of Baroda in 2005, C&MD - Allahabad Bank and C&MD - Canara Bank from where he superannuated in August 2010. He had also held various positions in Indian Banks Association (IBA) including Member, IBA Managing Committee and Dy. Chairman, IBA.

Besides being on the Board of various companies including HPCL, Mr Mahajan is a Chairman of Governing Council of Banking Codes and Standards Board of India (BCSBI), an independent watch dog of banking industry which is tasked with duty of ensuring that Banks provide to the customers services in transparent manner.

Prof. G Raghuram

Prof. G. Raghuram: Director

Prof. G. Raghuram joined the HPCL board as an Independent Director effective April 9, 2012.

Prof. Raghuram has done his graduation from the Indian Institute of Technology (IIT), Madras, MBA from IIM, Ahmedabad and PhD from Northwestern University, USA.

Prof Raghuram is a Professor in the Indian Institute of Management (IIM), Ahmedabad. His specialization is in infrastructure and transportation systems, and supply chain & logistics management. His research, consultancy, case studies and publications focus includes railways, ports and shipping, air and road sector, service organizations and supply chain management. He has taught at Northwestern University and Tulane University, USA. He has been a visiting faculty at various universities in USA, Canada, Yugoslavia, Tanzania, UAE, Singapore and several institutions in India. He has co-authored four books and published over 70 papers. He was the President of Operational Research Society of India (1999-2000). He is a Fellow of the Operational Research Society of India (ORSI) and Chartered Institute of Logistics and Transport (CILT-UK).

He also holds Directorships in Alcock Ashdown (Gujarat), Arshiya International, DARCL Logistics Limited, India Infrastructure Finance Company (IIFC), and Take Solutions, Chennai.

He is currently a member of the Steering Committee on Transport Sector for the formulation of the Twelfth Five Year Plan (2012-17) and Member of the Expert Group for Modernization of Indian Railways. He is also the Chairman of various committees connected with Ministries related to Transportation and the Planning Commission.

Dr. Gitesh K Shah

Dr. Gitesh K Shah: Director

Dr.Gitesh K Shah, a Scientist turned Management Expert, was appointed to the HPCL board effective February 26, 2013.

Dr.Gitesh K Shah has done his M.Sc., Ph.D. & D.Sc in Organic Chemistry. Dr.Gitesh K Shah is a Chartered Scientist, Chartered Chemist and Fellow of the Royal Society of Chemistry(RSC), London. (C.Sci., C.Chem., F.R.S.C.). He is also member of the prestigious Dr.Vikram Sarabhai Award Committee. He is based at Ahmedabad.

Dr.Gitesh K Shah, who is a noted Technocrat & Management Expert, has rich experience of 20 years in the field of Petrochemical, Chem-informatics, Bio-informatics and Nano–Technology. He has to his credit 18 research papers in renowned international journals in the field of Chemistry and Nano–Technology. He has served as the Chairman of the Gujarat Alkalies and Chemicals Limited (GACL), Baroda. He is Chairman of Harita Projects Private Limited, a company engaged in Infrastructure Projects and Nano-Molecules.

Dr.Gitesh K Shah has been an Part-time non-official Director of HPCL earlier - from December 7, 2009 to December 6, 2012.